To comply with the National Association of Realtors®️ proposed settlement agreement, starting on August 17, licensees working with sellers and buyers must clearly disclose that broker commissions are not set by law and are entirely negotiable.
This disclosure must be prominently included in brokerage service agreements, such as listing agreements and written buyer agreements. Additionally, the same conspicuous statement must appear on all pre-closing disclosure forms related to broker representation services. If a form is government-specified and does not include the statement, it must be accompanied by a document that does.
The following pre-closing disclosure forms must include the conspicuous statement:
- Consumer Information Statement
- Informed Consent to Disclosed Dual Agency
- Informed Consent to Designated Agency
New Jersey Realtors®️ provides a pre-closing disclosure form addendum on ZipForm that addresses the negotiability of commission. This addendum can be used with any pre-closing disclosure form lacking the required conspicuous statement. Additionally, New Jersey Realtors®️ has updated the CIS to include this statement and is working on updating all other pre-closing disclosure forms to ensure compliance with the new requirements.
